The Fed will Save Us! $1 Trillion of Annual Bond Buying

Ben Bernanke wisely decided to continue to expand operations at the Fed. The Fed will continue to buy $40 billion of mortgage-backed securities each month as well as $45 billion of long-dated Treasuries as operation twist expires.

The Fed kept short-term rates near zero, and they will stay this low as long as the unemployment rate remains above 6.5% and inflation stays under 2.5%, the Fed said.

"All eyes are opened, or opening to the rights of man, let the annual return of this day(July 4th), forever refresh our recollections of these rights, and an undiminished devotion to them."Thomas JeffersonJune 1826

"And now that the legislators and do-gooders have so futilely inflicted so many systems upon society, may they finally end where they should have begun: May they reject all systems, and try liberty; for liberty is an acknowledgment of faith in God and His works." - Bastiat

"It is difficult to free fools from the chains they revere." - Voltaire

Except as to the rule of apportionment, the United States have an indefinite discretion to make requisitions for men and money; but they have no authority to raise either by regulations extending to the individual citizens of America.

I really do not know what to make of you anymore. You just said that what ben bernanke is doing is wise? Sorry, my sarcasm sensor has been turned off with regard to any of your posts. So are you really serious?

I really do not know what to make of you anymore. You just said that what ben bernanke is doing is wise? Sorry, my sarcasm sensor has been turned off with regard to any of your posts. So are you really serious?

You have to monetize the debt to stave off deflation. The more money going around, the less the debt/fiscal problems matter.

The value is determined by an auction process similar to the one the Treasury uses to sell the notes. They don't purchase directly from the US Treasury usually. The Fed announces how many notes they want to purchase and the authorized Primary Dealers (who bought their Treasuries either directly from the US Treasury or from other holders of the notes) bid against each other- offering both a price and how many notes they want to sell. The Fed takes all of their secret bids and sorts them according to the lowest bid price. It takes the one with the lowest bid first and works their way through towards the highest bids until they have enough offers to be able to purchase the amounts they want. The closing price is the highest bid in the "accepted" stack which allows them to get that amount of Treasuries- and all successful bidders get the same price for that auction.

They can "invent" the money (some use the term "print" but that is not accurate- the Treasury does any actual physical printing of money) needed or it can come from money they earn from other deals and interest collected. In this case, the money will be pretty much all "invented".

Actually, there are quite a few people in the Ron Paul camp who don't support getting rid of the Fed. They're just not going to say that here.

I didn't even say "end the fed"! You said that bernanke's decision to debase the currency was a wise decision. Even the people who support allowing the fed to exist in the ron paul camp do not support them debasing the currency. And by your own admission, that is what big ben is doing. Keeping prices from going down and having things become more unaffordable is the very definition of debasement.

I didn't even say "end the fed"! You said that bernanke's decision to debase the currency was a wise decision. Even the people who support allowing the fed to exist in the ron paul camp do not support them debasing the currency. And by your own admission, that is what big ben is doing. Keeping prices from going down and having things become more unaffordable is the very definition of debasement.

Fine, remove end the fed. There also people here who support other measures like GDP targeting with monetary policy, a level annual increase in money supply, etc. Just because you only hear from people who are against the Fed's moves doesn't mean every RP supporter is. I'm here because I agree with most of Ron Paul's positions, not all of them.

Fine, remove end the fed. There also people here who support other measures like GDP targeting with monetary policy, a level annual increase in money supply, etc. Just because you only hear from people who are against the Fed's moves doesn't mean every RP supporter is. I'm here because I agree with most of Ron Paul's positions, not all of them.

As far as our GDP targeting with monetary policy that is a joke. Our trade deficit is off the charts screwed up and neither the federal government nor the FED give a hoot in hell. Both of them are personally assisting in the dismantling of all our manufacturing and moving them to China. They are hiding the true unemployment numbers and handing out EDB cards to over 50 million people.

How do you borrow $2 trillion from China then play hardball to have an even trade deficit? They have you by the balls. They simply call in the debt and crash your stock market and economy if you bother them. You have no power over them at all and they control you. Debt to communist generals is dangerous as hell but we wanted our UNFUNDED social programs and cheeseball wars...... to save the FED's dollar. The FED was only too happy to middleman that deal.

Our government has been reduced to a money junkie in debt over $16 trillion to the central bankers. They are worthless to make decisions on our behalf regarding the bankers, monetary policy or GDP etc. The FED bankers simply threaten to cut off the $1.5 trillion a year deficit spending money and the politicians will grovel at their feet and LITERALLY do anything asked. It is an alliance from hell.

DEBT DEBT DEBT = FED You have to wonder how all this power is derived from a worthless fiat currency only supported by the sheeple believing it has value. Yep, some more unbacked currency created with debt attached ought to straighten out this mess!

Actually, there are quite a few people in the Ron Paul camp who don't support getting rid of the Fed. They're just not going to say that here.

The Fed funds the wars abroad, the war on us at home, massive government, massive corruption and corporatism, massive theft... kind of hard to be "in the Ron Paul camp" and support the Fed... though I'm sure you've found a way... and we're happy to have you...

It's all about taking action and not being lazy. So you do the work, whether it's fitness or whatever. It's about getting up, motivating yourself and just doing it.